Corporate Research Group’s Weblog

Net income among 13 publicly traded health plans jumped 34% in the first quarter of 2010, according to a CRG tally.  The 13 plans posted first-quarter net income $3.4 billion on revenues of $72.4 billion — a net profit margin of 4.7%.  Revenues in the quarter were up a scant 1.7%.  O.K., we know these results aren’t sustainable given the long-term strictures healthcare reform puts on industry economics (see prior post).  But as we had predicted (see Outlook for Managed Care), 2010 is going to be a very good year for the managed care industry, driven an upswing in the underwriting cycle.  As for the politics of these strong results, well, you be the judge.